Stock Market is Rational Valuing Citigroup at 61% Fictional Book Value

That uncomfortable position is where some of the nation’s largest banks currently stand. For example, Citigroup shares are trading at 61 percent of its tangible book value, a measure of a bank’s equity that excludes items that are difficult to assess, like good will. And Bank of America stock trades at 75 percent of its tangible book value, down from a slight premium late last year.

Fictional Book Value, FBV, inaugurated here today.